Skip to Content
Morningstar
Get 14 Days Free

Cabot Oil & Gas Corp COG

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Cabot Still Looks Cheap After Incorporating Proposed Merger With Cimarex

Analyst Note

| Dave Meats, CFA |

We have slightly reduced our fair value estimate for narrow-moat Cabot, to $23 per share from $24, after taking into account the proposed "merger of equals" with Cimarex. That reflects a premium of about 40% to the last close. The transaction is structured as a all-stock acquisition of Cimarex by Cabot, resulting in Cimarex shareholders receiving 4.016 shares of Cabot stock for each Cimarex share held. Cabot will absorb Cimarex's assets and debt, giving it a substantial foothold in Oklahoma and in the Permian Basin in addition to its core operations in the northeast Marcellus. The combined business will operate under a new name, which has yet to be determined.

Read Full Analysis

Company Profile

Business Description

Houston-based Cabot Oil & Gas is an independent exploration and production company with operations in Appalachia. At year-end 2020, Cabot's proved reserves were 13.7 trillion cubic feet of equivalent, with net production that year of approximately 2,344 million cubic feet of natural gas per day. All of Cabot’s production is Marcellus dry natural gas.

Contact
840 Gessner Road, Suite 1400, Three Memorial City Plaza
Houston, TX, 77024
T +1 281 589-4600
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 503

Related

Investing Specialists
Our Ultimate Stock-Pickers' Top 10 High-Conviction Purchases
Several funds see value in technology, energy, and communication services.
Malik Ahmed Khan
Our Picks
10 Solid Dividend-Paying Stocks on Sale
We think the payouts on these names are sustainable.
Susan Dziubinski
Commentary
Looking Past the Pandemic: Stocks That Will Benefit From Economic Recovery
A few undervalued stocks remain, but many have already surged past fair value.
David Sekera
Stock Strategist Industry Reports
What E&Ps Can Learn From Big Tobacco
Here's a playbook for exploration and production companies to restore investor confidence.
Stephen Ellis
Stock Strategist Industry Reports
U.S. Oil and Gas Doesn't Need a Trump Win to Thrive
Weaning America off fossil fuels will take decades, even if Democrats sweep Congress in November.
Dave Meats
Stock Analyst Update
Storage Fears Spark Epic Collapse for WTI Crude
Widespread social distancing due to the coronavirus has dragged down gasoline consumption and storage utilization is rapidly climbing.
Dave Meats
Premium Article
7 Stocks With Dimmer Outlooks
These stocks underwent dramatic fair value or moat rating changes last month.
Susan Dziubinski
Stock Strategist Industry Reports
U.S. Shale Boom Finally Runs Out of Gas
However, we think the spike in natural gas prices is temporary.
Mark Hanson
Stock Strategist
Energy: Don't Expect a Quick Recovery for Crude Prices
Markets have rebounded recently, but much uncertainty remains, meaning near-term prices could remain ugly or deteriorate further.
Dave Meats
US Videos
2 Energy Companies That Can Weather the Storm
The durable competitive advantages of undervalued Continental Resources and Cabot Oil & Gas should drive strong returns on capital over the long term.
Dave Meats
Quarter-End Insights
Energy: Pain Persists as OPEC Refuses to Play White Knight
The current glut in crude supply continues to weigh on prices and will take several quarters more to work through.
Dave Meats
Quarter-End Insights
Stock Market Outlook: Late-Cycle Behavior?
We're unenthusiastic about the valuation of the broader market, but opportunities can be found in a few out-of-favor sectors.
Matthew Coffina
Quarter-End Insights
Energy: No Rapid Rebound for Oil Prices
The current glut in crude supply continues to weigh on prices and will take several quarters more to work through.
Dave Meats
Market Update
Should You Dip a Toe Into Oil?
There may be some investment opportunity in oil's slide, writes contributor John Waggoner.
John Waggoner
Quarter-End Insights
Energy: No Rapid Rebound for Oil Prices
The rapid decline in oil prices has created significant investment opportunities, but downside risk remains in the short term.
Dave Meats
Quarter-End Insights
Energy: Coping With Lower Oil and Gas Prices
The rapid decline in oil prices has created significant investment opportunities, but downside risk remains in the short term.
Dave Meats
US Videos
New Energy Outlook Brings Fair Values Down
After lowering our forecast for oil and gas prices, fair values across the energy sector have generally dropped, but some E&P and midstream names are reasonably valued, says Morningstar's Matt Coffina.
Matthew Coffina
Stock Strategist Industry Reports
Game Change: Low-Cost U.S. Oil Is Here to Stay
Oil prices are likely to rebound from here, but robust U.S. supply will ultimately cap upside.
Stephen Simko
Stock Strategist Industry Reports
Lower for Longer: A New Normal for U.S. Natural Gas Prices
Examining the impact of abundant low-cost supply--and uncertainty in global oil markets--on the domestic natural gas complex.
Mark Hanson
Rekenthaler Report
High Market Valuations May Signal Low Future Returns
Investors may not want to expect a lot from Mr. Market in the coming years.
Scott Cooley

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.